Government contracting rewards preparation. Companies that arrive at the table with compliant systems, audit-ready financials, and proper cost accounting tools are simply easier to work with than those that develop these capabilities on the fly. Margarita Howard built HX5 around that insight from its founding in 2004.
Her first major investment was not in personnel, office space, or marketing. It was a government-reviewed, purpose-built accounting system for federal contractors. At the time, it was an unconventional choice for a startup. Over time, it became the foundation on which HX5 built a record of successful audits, growing contract awards, and valuable teaming arrangements with major defense primes.
The Cost of Waiting
For small contractors, delaying infrastructure investment carries a real cost. Without proper accounting systems, companies restrict themselves to simpler, fixed-price contract types. They cannot pursue cost-plus awards, which often carry higher values. They cannot easily pass the audits that complex subcontracting arrangements require. They miss opportunities to partner with prime contractors during windows when those firms are actively seeking capable small business partners.
Howard understood this dynamic and chose not to wait. “If you don’t have the competitive edge and understand what it takes to compete for government work, then it’s a daunting task,” she said. “You have to know and understand the industry first, then build a good team, have the right infrastructure in place, and ultimately be able to meet all the obligations and requirements that come with government contracting.”
HX5’s Track Record
Margarita Howard’s philosophy produced measurable results. HX5 has grown from a single-employee firm to a company with more than 1,000 employees, operating at over 70 government locations across more than 20 states. The company has won prime contracts at a scale typically reserved for larger, more established firms and has been recognized for its subcontracting performance with a Prime Subcontractor of the Year designation.
The accounting system that Howard purchased in HX5’s earliest days a tool that many small businesses consider an expense to defer turned out to be one of the company’s most productive early investments. It was, in the framework Howard articulated, an investment in competition rather than an investment in appearances. See related link for additional information.
Find more information about Howard on https://www.margaritahoward.com/